Transaction Costs for Single-family Houses: An International Comparison

Authors

• Sylwia Lindqvist

Keywords:

Single-family houses, brokers, transaction cost, transaction process

Abstract

The transaction process and transaction costs for single-family houses in six countries are analyzed. Among the results for the "real" transaction costs, taxes included, are that transaction costs are lower in the countries where the broker has a more neutral role, and in the countries where the register system is more developed and where fewer parties are involved. In order to avoid high transaction costs it is important to avoid a situation where both buyer and seller have their own agent. Standardized information about properties, like the Home Information Pack in the UK, can however increase the efficiency of the market even though it increases the short run transaction cost.